Compare Trout, Inc. with SalmonEnterprises, using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital:

If the after-tax cost of debt is 11.111.1% for both companies and the cost of equity is

16.9816.98%, which company has the higher WACC?

What is the book value adjusted WACC for Trount, Inc.?

What is the book value adjusted WACC for Salmon Enterprises?

Data Table Current assets: $2,222,222 Long-term assets: $7,777,778 Total assets Current liabilities: Long-term liabilities: Owners' equity: $978.598 $6,124,937 $2,896,465 $10,000,000 Salmon Enterprises Bonds outstanding: 3,000 selling at $1,047.67 Common stock outstanding: 260,000 selling at $33.84 Print Done